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Germany, the Netherlands, and Luxembourg may have strong credit ratings, but that didn't stop Moody's from downgrading all three to "negative" yesterday, as the never-ending euro crisis continues to deepen, reports Reuters. The rating agency specifically warned about yesterday's threat by Germany to kick Greece out of the euro, saying the move would "set off a chain of financial sector shocks that policymakers could only contain at a very high cost."

With large economies like Spain and Italy needing giant bailouts, Moody's warned that the bulk of the burden will fall on Germany and Europe's other top-rated governments. Finland, however, maintained its "stable" rating. Spanish bond yields reached their highest level yesterday since the introduction of the euro, 7.565%, while German bonds fell to their lowest. "We are in a transitional period, and this transitional period could last for many years," warned an official at Moody's.

We all remember what happened last time Germany was expected to foot the bill for cleaning up Europe's mess.

Yourself

Jul 24, 2012 9:36 AM CDT

Germany is the one bailing out half the other countries and now you tell us Germany is in negative credit ratings... Yeah, cause that just gives SO much credibility to the system right? You know,in about a year, we'll find out that the credit rating system, much like Libor, has been rigged all along and that even the big agencies like the US Treasury knew all along! THE. SYSTEM. IS. RIGGED!!!!

jonnynonos77

Jul 24, 2012 8:46 AM CDT

Interesting. Germany finds itself in the unenviable position of either dismantling the Euro and forcing the world to endure all of the negative effects sure to come or spending itself into annhilliation hopelessly trying to prop up the turkeys with nonsensical hopes there will be some miraculous turn-around to make them solvent once more.